PALMER — Peter A. Picknelly, chairman and chief executive officer of Peter Pan Bus Lines, said he is concentrating his efforts on a downtown Springfield casino and plans to divest himself from the proposed Palmer project off Thorndike Street.

“At some point I need to divest myself from the Palmer investment. The formality has not taken place yet. It needs to and I will likely do so sooner rather than later,” Picknelly said this week.

Picknelly said he has been an investor in the land, which is owned by Northeast Realty. He declined to detail specifics.

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Connecticut-based Mohegan Sun has long wanted to build a resort casino off Thorndike Street (Route 32) across from the Massachusetts Turnpike exit. It is leasing the land from Northeast Realty, and is one of two announced casino projects for Western Massachusetts. The other proposal is by Las Vegas-based Ameristar Casinos, which purchased the former Westinghouse site off Page Boulevard earlier this year.

Picknelly, whose business is in downtown Springfield, said he now feels the city is the best location for a casino, and is proposing a casino on land in the north end of Springfield that would include the bus station property on Main Street.

Picknelly’s involvement with the Palmer project was announced back in 2008. At the time, he said he felt Palmer was the best location for a casino. Picknelly said that he viewed the Palmer project as a real estate investment back then.

Now, he said, he sees a casino as part of a downtown revitalization plan for Springfield, as it would bring jobs and tax income. Picknelly said he believes having a casino in the city would provide the most benefits to Western Massachusetts.

“Times change. Circumstances change. I now wholeheartedly believe the best place for a casino in Western Massachusetts is in Springfield and in downtown Springfield and I will concentrate my efforts in making that a reality,” Picknelly said.

“I think the plans we’re formulating are exciting and I’m really looking forward to the revitalization ... I think it would be fantastic for Springfield,” he added. “It would have a dramatic impact on the city.”

He said he could not release details of the proposal for the north end yet, although he said several casino developers have been interviewed. He said he may have more information within the next 30 days.

“Plans are really developing now and at the appropriate time we’ll make the announcements,” Picknelly said.

Picknelly’s brother, hotel developer Paul C. Picknelly, also was attached to the Palmer project as an investor. In 2007, he said he was considering building a hotel on the property. Like his brother, Paul Picknelly at the time said he supported the Palmer site for a casino over an urban location.

Paul Picknelly recently has discussed opening a casino in the South End of the city with city councilors, although nothing has been formally released. But on Friday, City Council President James Ferrera III revealed that MGM Resorts International has options on properties from the area of State and Main streets to Union and Main streets. He said he was not given specifics regarding square footage or acreage of the project, but said he was told that MGM is working with hotel developer Paul Picknelly.

Paul Picknelly could not be reached for comment.

“We are not working together, but we certainly both believe that downtown Springfield is the best place for a casino,” Peter Picknelly said about his brother.

There also may be another casino proposal in the heart of downtown, according to Kevin E. Kennedy, chief development officer for Springfield.

Leon H. Dragone, manager of Northeast Realty, said the Picknelly brothers are investors in the Palmer project and have been committed supporters.

“It’s disappointing to learn they would support a competing project,” Dragone said.

In addition to Mohegan Sun and Ameristar, several other casino companies have expressed an interest in Western Massachusetts but have not released proposals. They include Penn National Gaming of Wyomissing, Pa.; Hard Rock Cafe of Florida, which dropped a casino plan for Holyoke; and MGM Resorts of Las Vegas, which canceled a plan for Brimfield.